EuroCham has released the results of Business Climate Index (BCI) for Quarter 1 – 2017. The index is 78, dropping 7 points down from last quarter's score, and returning to levels of Q2 2016.
European businesses and companies with links to Europe moderately confident about the Vietnamese market, more is expected from the country’s business environment.
1. Current Business Situation
The sentiment of European and European-linked companies in Vietnam when it comes to the conditions for business in the Vietnamese market is moderately positive. According to the responses to the latest EuroCham Business Climate Index (BCI) survey, 67% of the respondents described their current business situation as “excellent” and “good”, an approximately 5% drop from previous quarter. A slight rise was verified in the “not good” and “very poor” answers (which previously had almost no bearing), with 9% and 3%, respectively (from 3% and 2% the last quarter).
2. Business Outlook for the next Quarter
When it comes to the future, a positive sentiment regarding next quarter’s business outlook continues. Positive answers have decreased only slightly (1% for those expecting an “excellent” Q2, and 5% for the more moderately optimistic). While the “neutral” attitude is kept at same levels this quarter, the “not good” outlook has jumped from 0% to 7% since over Q1 2017, and the “very poor” opinions climbed from 2% to 4%.
3. Vietnam’s Macroeconomic Outlook for the next Quarter
EuroCham members that expressed confidence in a stable and continuously improving macroeconomic scenario for Vietnam have dropped by around 10%. Conversely, businesses that believe the macroeconomic conjuncture can even deteriorate has risen 11% to 18% at present. The number of respondents that expect no change in the next quarter remains close to the 40% mark...